Summary
Weave closed fiscal 2024 with fourth-quarter revenue of $54.2 million, up 18.6% from $45.7 million in the prior-year quarter. Full-year revenue was $204.3 million, up 19.9% from $170.5 million. Gross profit rose 23.6% to $39.0 million in the quarter, and full-year gross profit was $145.9 million, up 25.7%. Gross margin expanded to 72.1% in the fourth quarter from 69.1%, while full-year gross margin was 71.4% compared with 68.1%. The revenue increase came from new customer locations and from existing customer locations under subscription. Weave ended 2024 with 34,997 customer locations, up from 31,002 at the end of 2023, and added 3,995 net new customer locations during 2024.
Profitability improved even though GAAP losses remain. The fourth-quarter GAAP operating loss was $7.4 million, narrowing from $8.0 million a year earlier. The full-year GAAP operating loss was $31.4 million, narrowing from $34.4 million. Operating margin was -13.6% in the quarter, an improvement from -17.5%, and full-year operating margin was -15.4%, an improvement from -20.2%. GAAP net loss was $6.7 million in the quarter, narrowing from $7.0 million, and full-year GAAP net loss was $28.3 million, narrowing from $31.0 million. Full-year diluted EPS was -$0.40, narrowing from -$0.46. On a non-GAAP basis, fourth-quarter income from operations was $1.8 million, an improvement of $3.5 million, and full-year non-GAAP income from operations was $0.8 million, an improvement of $12.4 million.
Cash generation was a clear positive. Fourth-quarter net cash provided by operating activities was $6.7 million, up from $3.7 million in the prior-year quarter. Full-year net cash provided by operating activities was $14.1 million, up from $10.2 million. Free cash flow, a non-GAAP measure, was $6.1 million in the quarter, up from $2.9 million, and $10.4 million for the full year, up from $6.5 million. Deferred revenue, current portion, was $40.0 million, up 2.9% from $38.9 million. Retention metrics were mixed. Dollar-based net retention rate was 98% as of December 31, 2024, up from 95% a year earlier. Dollar-based gross retention rate was 91%, down from 92%. Management highlighted new integrations with Prompt and Practice Fusion, plus the enhanced Weave platform and Weave Enterprise for multi-location organizations.
Guidance points to continued growth. For the first quarter of 2025, Weave guides non-GAAP income (loss) from operations to a range from negative $0.7 million to positive $0.3 million. For the full year 2025, the company guides non-GAAP income from operations to $2.0 million to $6.0 million. Weighted average share count is expected to be 73.8 million in the first quarter and 75.9 million for the full year. The revenue outlook calls for growth in both the first quarter and the full year. The CEO said Weave will keep investing in medical vertical markets, mid-market, partnerships, AI, and payments. The guidance excludes stock-based compensation and other reconciling items, and the company does not provide a GAAP reconciliation for forward-looking operating income without unreasonable effort.
Risks remain familiar for a growing SaaS platform. The 10-K lists the ability to attract new customers, retain existing customers, and increase customer use of the platform, plus the ability to manage growth, competition, customer acquisition costs, and sales and marketing strategies. Macroeconomic uncertainty could pressure demand. The company also cites regulatory fees on text messaging and phone calls, fees paid to application providers, costs tied to AI-based features, cloud infrastructure costs, and stock-based compensation. It carries a full valuation allowance against domestic net deferred tax assets. On leadership, CFO Alan Taylor plans to retire at the end of the first quarter of 2025, and Jason Christiansen, currently vice president of finance, is expected to become CFO.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $54.2M | $52.4M | +3.4% | $45.7M | +18.6% |
| Gross profit | $39.0M | $37.7M | +3.5% | $31.6M | +23.6% |
| Gross margin | 72.1% | 72.0% | +0.1 pp | 69.1% | +3.0 pp |
| Research & development | $10.8M | $9.9M | +9.0% | $9.1M | +17.8% |
| Sales & marketing | $21.9M | $21.2M | +3.7% | $18.3M | +19.9% |
| General & administrative | $13.7M | $13.3M | +2.9% | $12.2M | +12.9% |
| Total operating expenses | $46.4M | $44.4M | +4.6% | $39.6M | +17.3% |
| Operating income (loss) | -$7.4M | -$6.6M | -11.2% | -$8.0M | +7.8% |
| Operating margin | -13.6% | -12.7% | -0.9 pp | -17.5% | +3.9 pp |
| Net income (loss) | -$6.7M | -$5.9M | -14.2% | -$7.0M | +4.7% |
| Net margin | -12.4% | -11.2% | -1.2 pp | -15.4% | +3.0 pp |
| Diluted EPS | -$0.09 | -$0.08 | -$0.01 | -$0.46 | +$0.37 |
| Customers | 30,000 | — | — | 28,000 | +7.1% |
Risks
The company is incorporating additional AI solutions and features into its platform and business, but there is no assurance it will realize the desired benefits. The filing says these investments may negatively impact cost of revenue and gross margins until revenue increases enough to offset them, and competitors may incorporate AI more quickly or more successfully.
Revenue is concentrated in SMB healthcare practices, which the filing says may be affected by economic uncertainty or downturns to a greater extent than enterprises and typically have more limited financial resources. Weak conditions could reduce demand, delay sales, or increase churn even as FY2024 revenue rose 19.9% to $204.31 million.
A majority of customers pay monthly and have no contractual obligation to renew, and SMB customers have historically experienced turnover. Dollar-based gross retention rate was 91% for 2024 compared with 92% for 2023, and annual prepayment elections decreased to approximately 34% of customer locations from 39%.
Revenue is concentrated in dental, optometry, veterinary, and other medical specialty verticals, and future growth depends on expanding within and beyond these healthcare markets. Expansion requires adapting the platform, developing integrations with practice management software, and meeting strict patient privacy regulations.
The business relies on critical single-source or limited-source providers, including Stripe for Weave Payments, GCP for cloud infrastructure, and vendors such as Yealink, Bandwidth, and Telnyx for hardware and messaging. The GCP agreement runs through 2027 with no renewal right, and Stripe agreements expire at various dates after 2028.
The healthcare-focused platform is subject to stringent regulations such as HIPAA and patient privacy rules, and new verticals may require additional regulatory functionality. Breaches or noncompliance could lead to fines, penalties, litigation, reputational harm, and customer loss.
Expansion into medium-sized and multi-location healthcare organizations, including through Weave Enterprise, may involve higher costs, longer sales and installation cycles, more approval layers, and less predictable timing. Customers may also demand more features, integrations, service-level agreements, or customization.
The market is highly fragmented and competitive, with systems of record and point solution providers able to bundle competing functionality at lower prices or integrate directly. MD&A notes the alternative point solution patchwork, and competition could pressure pricing, margins, and customer acquisition.
The company has experienced significant growth and churn in employees over the last few years, creating operational challenges particularly in customer service and sales. Approximately one quarter of current customer service and support staff has been employed for less than one year, and AI initiatives depend on hiring and retaining scarce expertise.
SaaS KPIs
All quarters →Free cash flow
Dollar-Based Gross Retention Rate (GRR)
Dollar-Based Net Retention Rate (NRR)
Non-GAAP Operating Margin
Summary, forecast, risks and KPIs are extracted from Weave Communications, Inc.'s SEC filings for Q4 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 6, 2026.